United says it may outsource 2,000 airport jobs

(Bloomberg) — United Continental Holdings Inc. is considering outsourcing as many as 2,000 jobs at non-hub airports as the carrier looks to cut costs.

Outside contractors may take over the positions at 28 airports including those serving Indianapolis, Atlanta and St. Louis, Luke Punzenberger, a United spokesman, said. The carrier, the world's second largest by traffic, notified employees and the International Association of Machinists and Aerospace Workers this morning about the possible shift.

The airline has been trying since late 2013 to cut $2 billion from its annual costs through fuel savings, workforce reductions and other measures. The Chicago-based carrier reported $37 billion in operating expenses for 2013, giving it one of the lowest profit margins among peers. United in July said it would outsource more than 630 positions at 12 U.S. airports.

No final decisions have been made about the latest round of outsourcing, including how many positions would be affected and where they would be, Punzenberger said in a telephone interview.

“We want to make these decisions as quickly as possible because we have to make sure that our costs are competitive,” he said.

An IAM spokesman said he was seeking a comment from union leadership.

The union's contract protects jobs at big hubs, such as Chicago's O'Hare International Airport and Newark Liberty International Airport in New Jersey. The airline can outsource jobs at smaller stations. However, United must meet with the union to negotiate any potential shift of work to contractors, according to an update posted on the website of IAM's District 141, which represents airport workers.

The airports that may be affected by the latest move mostly are serviced by United's regional operation, United Express, rather than by the main carrier, Punzenberger said.